Andrii Semenog, Ph.D. in Economics, Associate Professor, Associate Professor of Financial Technologies and Entrepreneurship Department, Sumy State University, Sumy, Ukraine

ORCID ID: 0000-0003-3222-9574
e-mail: a.semenog@biem.sumdu.edu.ua

Olena Pakhnenko, Ph.D. in Economics, Associate Professor, Associate Professor of Financial Technologies and Entrepreneurship Department, Sumy State University, Sumy, Ukraine

ORCID ID: 0000-0002-4703-4078
e-mail: o.pakhnenko@biem.sumdu.edu.ua

Anzhelika Shalda, Bachelor of Financial Technologies and Entrepreneurship Department, Sumy State University, Sumy, Ukraine

ORCID ID: 0000-0003-1910-4988
e-mail: shalda.lika@gmail.com

Neobanks in Ukraine: Features, Trends and Obstacles to Development

Abstract. Introduction. In the modern world, technology is increasingly influencing various areas of our lives, including the financial sector. The emergence of new innovative approaches to financial services is changing the traditional concept of the banking sector. One of the key emerging trends in this area is the development of neobanking as a system that covers a wide range of financial services provided by companies that are not traditional banks and use innovative technologies such as artificial intelligence, blockchain, digital platforms, and others to provide customers with more convenient, efficient, and affordable financial services.

Purpose. The study aims to identify the main trends in the development of the modern banking sector in the context of the emergence of neobanks in the world and in the national field.

Results. The article defines the essence of the concept of neobanking and analyzes its theoretical foundations. The specific features of the formation and operations of neobanks were considered. The essential neobank products are identified, and the main models of neobanks are analyzed. The global neobank market has been analyzed recently, and the main development trends have been identified. The domestic market of neobanks was also studied, and the main problems and obstacles to developing neobanks in Ukraine were identified. Transformational measures to address the problems under the regulatory framework in the context of the digitalization of the banking sector are proposed. The prospects for the development of digital banks are outlined.

Conclusions. As a result of the research, a detailed analysis of the theoretical and practical aspects of neobanking under the influence of digitalization and other external factors at both the macro and micro levels was conducted. It helped to identify barriers to the comprehensive implementation of neobanks in practice and suggested directions for their prospects in the context of the Ukrainian banking sector.

Keywords: digitalization; neobanks; banking sector; innovative technologies; fintech; digital economy; banking regulation; banking services.

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